Bank of Maharashtra (BoM) is setting its sights on robust credit growth exceeding 20%, driven by a strategic focus on digital lending initiatives and strong momentum in key sectors. The bank's growth strategy, as outlined in its recent investor presentation, emphasizes core retail, agriculture, and MSME (RAM) segments while leveraging technological advancements.

Digital Transformation Fueling Growth

BoM is making significant strides in its digital transformation journey, which is expected to be a key driver of its ambitious growth targets. The bank reported that 98.84% of its transactions are now conducted through digital channels, highlighting the success of its digitalization efforts.

Key Digital Initiatives

1. UPI/BHIM Adoption: The bank has seen a substantial increase in UPI/BHIM users, reaching 6.12 million as of September 2025, up from 3.11 million in September 2024.

2. WhatsApp Banking: BoM's WhatsApp banking service has gained traction, with user base growing to 2.03 million by September 2025.

3. QR Merchant Onboarding: The bank has successfully onboarded 0.95 million merchants for QR-based transactions.

4. Mobile Banking: Mobile banking users have increased to 2.30 million as of September 2025.

Focus on RAM Segments

The bank's strategy to focus on Retail, Agriculture, and MSME (RAM) segments appears to be paying off. As of September 2025, the RAM portfolio constitutes 62.19% of BoM's domestic advances, indicating a strong presence in these key sectors.

Stable Asset Quality

Despite the aggressive growth plans, BoM is maintaining a focus on asset quality. The bank reported a Gross Non-Performing Asset (GNPA) ratio of 1.72% as of September 2025, showcasing its ability to manage credit risk effectively while pursuing growth.

Outlook

Bank of Maharashtra's strategy of combining digital innovation with a focus on core lending segments positions it well for sustained growth. The bank aims to maintain stable net interest margins and keep gross non-performing assets low. Additionally, BoM is implementing technology-led efficiency measures to improve its return on equity trajectory through FY26.

As the banking sector continues to evolve, BoM's emphasis on digital lending and its strong presence in retail, agriculture, and MSME segments could provide it with a competitive edge. However, the bank will need to navigate potential economic headwinds and maintain its asset quality to achieve its ambitious growth targets.

Investors and industry observers will be keenly watching how Bank of Maharashtra executes its strategy in the coming quarters, particularly its ability to leverage digital channels for growth while managing risks effectively.

Bank of Maharashtra employees and officers have raised concerns over recent media reports suggesting a potential merger with the State Bank of India (SBI), prompting them to seek clarification from Finance Minister Nirmala Sitharaman.

Uncertainty Amidst Merger Speculations

The Bank of Maharashtra employees & officers federation has written to the Finance Minister regarding media reports that cite unnamed government sources discussing a possible merger with SBI. These reports have created a wave of uncertainty among the bank's employees, customers, and investors.

Highlighting Bank's Performance

In their communication to the Finance Minister, the federation emphasized Bank of Maharashtra's outstanding performance in several key areas:

The federation also underscored the bank's vital role in Maharashtra's socio-economic fabric, suggesting that a merger could potentially disrupt the bank's contributions to the state's development.

Request for Official Clarification

To address the growing concerns, the federation has requested an official clarification from the Finance Ministry. They believe that refuting the merger reports would help:

1. Restore stakeholder confidence
2. Allow the bank to continue its independent growth journey

Bank's Recent Performance

While not directly related to the merger reports, it's worth noting that Bank of Maharashtra has been showing strong performance in recent quarters. As per the latest financial results:

• Total business grew by 14.00% to Rs. 5.63 lakh crore
• Deposits increased by 12.13%
• Advances rose by almost 17.00%
• Gross NPAs declined to 1.72%
• Net profit increased by 23.00% to Rs. 1,633 crore

These figures underscore the bank's robust financial health and growth trajectory, which the employees' federation likely sees as further reason to maintain the bank's independence.

Conclusion

As the situation unfolds, stakeholders await an official response from the Finance Ministry regarding the merger speculations. The clarification sought by the Bank of Maharashtra employees' federation is crucial for maintaining stability and confidence in the bank's operations and future plans.